MILLBURY — Selectmen approved by a vote of 4-1 Tuesday night a host community agreement with Mass Gaming & Entertainment for a proposed slots parlor that would bring the town at least $3.25 million a year in new revenue.

Selectman Brian Ashmankas voted against the agreement, citing unforeseen costs, traffic tie-ups and other community impacts. "I don't think we can sacrifice the well being of the town and its residents at the altar of additional tax revenue," he said.

Selectmen Mary Krumsiek, E. Bernard Plante, Francis B. King and Sandy Cristo voted in favor of the deal. After the agreement was signed, selectmen voted to schedule a townwide referendum on it for Sept. 24.

The developer, a subsidiary of Chicago-based Rush Street Gaming, last week unveiled the proposal for a $200 million, 110,000-square-foot casino, with 1,250 slot machines, food and beverage venues, multipurpose function space and a day spa. It would be on McCracken Road and Route 146, near the Shoppes at Blackstone Valley.

Rush Street Gaming Chief Executive Officer Gregory Carlin recapped the proposal Tuesday, saying it would add to the town's transition to a tourist and visitor destination. "I always describe the best (casino) location as being like a regional shopping center. The regional shopping mall is a great site," Mr. Carlin said. "We think there will be a lot of synergy with the Shoppes."

Town Manager Robert J. Spain Jr. highlighted the details of the host community agreement:

◼?a payment to the town of $500,000 prior to starting construction;

◼?annual payments of a minimum $3.25 million, consisting of 2 million in real and property taxes and $1.25 million for community impact fees, which would increase 2.5 percent annually beginning in the fourth year;

◼?a promise to house all vehicles in town with excise taxes paid to the town.

◼?preference given to local residents for construction and permanent jobs.

◼?responsibility by the developer for all infrastructure improvements required by the Planning Board, such as roadways and sewer, as well as all legal, consulting and election fees associated with the proposal.

◼?reimbursement by the developer of up to $50,000 for additional public safety costs, in addition to other public safety features tied to the casino.

"In our agreement, the payments can't go down. They can only go up over the life of the agreement," Mr. Spain said. "There's a lot of upside to this agreement that's not in other agreements."

Mr. Spain said the impact of an additional minimum $3.25 million on the town's roughly $36 million general fund would be huge.

Mr. Plante, who chairs the board, said: "Our responsibility ... is to negotiate the best contract we can for the town of Millbury ... We now feel we have the best possible agreement we could have with Mass Gaming & Entertainment.

"I'm glad the Legislature passed a bill that would allow the people in this town to have a vote in this."

The developers also need a special permit for the proposed casino from the Planning Board, which will hold a public hearing at 7 p.m. Aug. 12 at Millbury High School.

Rush Street Gaming turned to Millbury as a potential host site after its proposal for a similar slots parlor in Worcester fell apart in June. Two weeks ago the state Gaming Commission approved the suitability of its subsidiary Mass Gaming & Entertainment, after reviewing extensive background checks on "qualifiers" — key personnel and investors — affiliated with the business.

Rush Street Gaming is vying with four other slots casino applicants for the sole state license. They are Cordish Cos. in Leominster, Penn National Gaming in Tewksbury, Plainridge Racecourse in Plainville and Raynham Park.

Meanwhile, with its host agreement signed in Leominster, and the same date as in Millbury, Sept. 24, for a referendum, Cordish is moving forward with its efforts to promote its slots-only project.

Joseph Weinberg, managing partner, said in a news release that Cordish, which is doing business for the Leominster project as PPE Resorts Casino MA, will open a base office in Leominster.

Mr. Weinberg said Cordish's team will be available through the office to answer questions from residents, provide information, meet with community and business leaders, and discuss the benefits they expect Live! Casino Massachusetts will bring to the community. The casino would be built near Route 117 and Interstate 190.

As part of the effort, a website has been launched. It will contain information on the project and contact information for people looking for jobs or to bid on construction jobs.

A Facebook page, Live Casino Massachusetts, has also been created.

George Barnes of the Telegram & Gazette staff contributed to this report